EUROPEAN TELECOM TOWERS DEALS TO HIT NEW HEIGHTS

The scene is set for a potential $20bn in asset deals

August 22, 2019

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Telecom tower owners and prospective investors are gearing up for a frantic period of deal-making in a European market full of opportunity. As activity heats up, AlixPartners has identified that a potential $20bn in asset deals could be on the table in the next 12-24 months. But how do investors and divestors alike get the most value from these deals?

In stagnating markets, where growth is limited and sometimes non-existent, Mobile Network Operators (MNOs) are finding their cashflow under growing pressure. This is exacerbated by telcos being pushed to increase the speed and reach of fiber deployments, and find vast sums for new spectrum investment. With revenue increasingly de-coupled from costs, telcos need to think differently.

MNOs, TowerCos and investors need to deliver on the value promise that towers present. But it’s far from easy, and each group must overcome a variety of strategic, competitive, technical and financial considerations to develop their towers’ business case and navigate the operational challenges to deliver on that promise.

"5G deployment looks set to be rather different to previous iterations of mobile technology, as operators seek to differentiate and monetize through focused B2B use cases, rather than mass consumer deployment."

It is a prime time in the telecom towers market for divestors and investors. AlixPartners works with MNOs, TowerCos and PEs throughout the lifecycle of divestment, from opportunity assessment through to real value creation. We can help:

Access an international network of investors, entrepreneurs, companies and finance providers

Generate deal flow through target identification and screening

M&A lead advisory/debt advisory/valuations

Complex integration/carve-out support

Operational and IT due diligence

Sale process preparation and exit readiness

Support business through its development, including operational, organization and strategy support